Austin Crypto-Investing Firm Signs Compliance Order

Feb 15

The chief executive officer of an Austin-area cryptocurrency investment firm has agreed to stop offering for sale any security in Texas until the firm complies with state registration requirements.

Texas Securities Commissioner Travis J. Iles on Feb. 15 entered an Order in which Daniel Neves, the CEO of Investors in Crypto LLC, agreed to halt sales until he and his firm register with the Securities Commissioner or qualify for an exemption from registration. The firm is based in Leander, an Austin suburb.

At the time of the order Neves' firm was offering unregistered securities in various cryptocurrency trading programs and investment portfolios.

The order found that Neves was offering the investments through social media – including Facebook and videos posted on YouTube and an online financial services forum for Austin residents.

The order is the fifth entered against a firm selling investments tied to the value of cryptocurrencies, but the first order in which a firm agreed to halt operations until it complies with securities regulations. (Read about other cryptocurrency orders.)

Neves agreed to the order after the Enforcement Division of the State Securities Board notified him on Feb. 10 that he and his firm were violating the Texas Securities Act.

"The State Securities Board welcomes the cooperation of firms that indicate they want to comply with registration requirements,"said Commissioner Iles. "Assisting firms in compliance matters, and doing so through voluntary negotiations, is an important function of the Securities Board."